Making Sure All Americans Have Access to EVs

Making Sure All Americans Have Access to EVs

Transportation is the largest contributor to carbon emissions in the US, which primarily comes from the burning of fossil fuels in cars, planes, trains, and ships. In an effort to address the climate crisis and support the nation's energy security, the Biden Administration has set a goal for 2030 that 50% of vehicle sales in the US will be electric vehicles (EVs).

While the government and major car companies are pledging to phase out their gasoline-powered vehicles and switch to electric in the next decade, low-income consumers are being left behind because of the high EV price tag. According to Kelley Blue Book, the average price of an EV is $56,437 -- equivalent to that of an entry-level luxury car.

American Lung Association: The Electric Vehicle Solution, February 3, 2021.

Why it Matters

Ensuring the affordability of EVs for everyone will ensure a smooth transition to clean transportation in the near future. In an effort to help make the switch more affordable, there is currently a $7,500 federal tax credit, and in some states an additional $2,500 rebate, for newly purchased EVs. Last year Biden announced a $7.5 billion dollar commitment to building a national network of charging stations.

However, these incentives are not equitably dispersed. Tax credits often benefit higher-income households and charging stations are often built in wealthy, primarily white neighborhoods. Programs such as California's "Clean Cars 4 All" are looking to combat these inequalities by offering grants for EV purchases to low-income families.

A switch to a majority of EVs would significantly reduce carbon emissions in the US and decrease the amount of pollution in the air. In turn, it would provide healthcare cost savings by reducing air pollution that disproportionately affects low-income communities. And while saving the environment, EVs will also save consumers money because of their cheaper maintenance, repairs, financing, and fuel costs

WSJ: How the EV Industry Is Trying to Fix Its Charging Bottleneck, July 8, 2021.

How to Make EVs More Equitable

Access to home charging is one of the most important considerations when making the decision to buy an EV, so more focus needs to be put on increasing its accessibility and ease. And, public infrastructure for charging stations needs to be equitably dispersed among communities.

According to analysis in MIT's Science Policy Review, "If policymakers want to create a more equitable [plug-in electric vehicle] market, incentives should be higher for lower income households" and they should be offered at time of purchase for both new and used vehicles. Current tax rebates for EVs are received up to a year after date of purchase, which doesn't benefit (or incentivize) all consumers.

Biden's sentiment that "the future of auto is electric" marks an exciting and promising future ahead, but it's critical that the transition is available to all Americans and doesn't leave anyone behind.

How to Make EVs More Equitable

Access to home charging is one of the most important considerations when making the decision to buy an EV, so more focus needs to be put on increasing its accessibility and ease. And, public infrastructure for charging stations needs to be equitably dispersed among communities.

According to analysis in MIT's Science Policy Review, "If policymakers want to create a more equitable [plug-in electric vehicle] market, incentives should be higher for lower income households" and they should be offered at time of purchase for both new and used vehicles. Current tax rebates for EVs are received up to a year after date of purchase, which doesnt benefit (or incentivize) all consumers.

Biden's sentiment that "the future of auto is electric" marks an exciting and promising future ahead, but it's critical that the transition is available to all Americans and doesn't leave anyone behind.